Exemption of service element and disability element of disability pension granted to disabled personnel of armed forces who have been invalided on account of disability attributable to or aggravated by such service

Income Tax Exemption Clarified for Disability Pension of Armed Forces Personnel Invalided Due to Service-Related Disabilities.

Circular No. 13/2019, dated June 24, 2019, issued by the Central Board of Direct Taxes, clarifies the income tax exemption for the disability pension granted to disabled armed forces personnel. This exemption applies to both the 'service element' and 'disability element' of the pension for personnel invalided due to disabilities attributable to or aggravated by service. The exemption is available to all ranks of armed forces personnel, provided they were invalided due to service-related disabilities, and does not apply to those who retire after completing full service.